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Yesterday we noted that more than 50% of stocks in the S&P 500 (SPY) were trading in oversold territory (or more than one standard deviation below their 50-day moving averages). Below we highlight the 40 stocks in the index that are currently the most oversold. For each stock, we show the number of standard deviations it is trading versus its 50-day moving average (how oversold it is), its actual distance from its 50-day moving average, and its year-to-date percentage change.

As shown, Avery Dennison (AVY) is the most oversold stock in the S&P 500 at 4.35 standard deviations below its 50-DMA. RadioShack (RSH) ranks second worst, followed by Newell Rubbermain (NWL), FedEx (FDX), and Ameriprise Financial (AMP). Other notable stocks on the oversold list include Cisco (CSCO), Home Depot (HD), General Electric (GE), Verizon (VZ), and Citigroup (C).

Momentum traders stay as far away from oversold stocks (on the long side at least) as possible, while bottom feeders do just the opposite and look for beaten down names that have moved too far below their normal trading ranges. If you're a bottom feeder, this list is right up your alley.

(Click chart to enlarge)

Source: Most Oversold S&P 500 Stocks